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Estée Lauder to Close Designer Fragrances Division

The move comes after the company has closed Becca and Rodin Olio Lusso, too.

The Estée Lauder Cos. is winding down its Aramis & Designer Fragrances division, WWD has learned.

The segment houses Aramis, Tommy Hilfiger, Michael Kors, Donna Karan, DKNY and Ermenegildo Zegna. Aramis, the prestige men’s line launched in 1963, will be moved into another division within Lauder. The other licenses will wind down between now and 2023.

Michael Kors plans to enter into a new agreement with EuroItalia, which has also just extended its license for fellow Capri Holdings brand, Versace, for another 15 years. Inter Parfums Inc has signed the license for Donna Karan and DKNY, effective July 1.

Lauder issued a statement saying that it “is committed to ensuring that it is focused on investing its resources into the most strategic long-term growth opportunities and value creation globally.

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Lauder said that “after careful and thorough consideration, ELC and the four fashion houses have mutually decided to not renew the licensing agreements” when they come to an end, which will happen by June 2023. “This means that ELC will wind down the ADF division by June 2023,” the statement continues.

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“Fragrance is a winning category for our company and continues to be a key long-term area of focus. The transfer of these four licenses will enable us to fully dedicate our attention and resources to our powerful and winning luxury and prestige fragrance portfolio.”

After the wind down of the ADF division, Lauder will still have several luxury fragrance lines, including Tom Ford Beauty, Le Labo, Editions de Parfums de Frederic Malle, Jo Malone London Aerin and Kilian Paris. The Estée Lauder and Clinique brands also have fragrance lines.

“We are proud of the long-term relationships we have built with our four designer fragrance licenses and deeply grateful to our employees, whose passion and commitment helped us build a successful designer fragrance division. We will work closely with our fashion house partners to ensure the best and most seamless transitions possible to support their bright futures,” Lauder said in the statement.

Lauder had previously let go of the license for designer Tory Burch in 2019. It was signed by Shiseido.

The coronavirus has prompted several shifts in Lauder’s business, including the closures of the Becca and Rodin Olio Lusso brands. The company is also closing some of its stores and department store counters, and has also reorganized the business in North America.

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